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in Vacaville, CA
Vacaville self-employed borrowers face a choice between two non-QM options. Both skip tax returns, but they verify income differently.
1099 loans work best when your forms show strong income. Bank statement loans shine when deposits tell a better story than your 1099s.
Most Solano County brokers push one program or the other. We compare both against your actual financials to find the better rate.
1099 loans use your 1099 forms to calculate qualifying income. Lenders typically average 12-24 months of 1099 income with minimal write-offs applied.
This works when you're actually reporting most of what you earn. Contractors who don't over-deduct see better qualifying numbers here than with tax returns.
Credit requirements start around 620. Expect 10-20% down depending on loan amount and property type in Vacaville.
Bank statement loans analyze 12 or 24 months of business or personal bank deposits. Lenders calculate income from total deposits minus a standard percentage for expenses.
This captures cash flow that 1099s miss. Gig workers, cash-heavy businesses, and high-deduction contractors often qualify for more using bank statements.
Same credit floor around 620. Down payment requirements match 1099 loans but rates can run 0.25-0.75% higher depending on the lender.
The core split is documentation versus deposits. 1099 loans need your forms and maybe a CPA letter. Bank statement loans need 12-24 months of statements showing consistent deposits.
Income calculation differs drastically. 1099 programs take your reported earnings almost at face value. Bank statement lenders deduct 25-50% for estimated expenses depending on your industry.
Rate differences matter in Vacaville's price range. Bank statement loans typically price 0.25-0.50% higher than 1099 loans when credit and down payment match.
Processing speed favors 1099 loans. We can often clear income verification in days versus weeks of analyzing bank statements and tracking down deposit sources.
Run both calculations before choosing. If your 1099 income already qualifies you for the Vacaville home you want, that's the simpler and cheaper path.
Bank statements make sense when 1099s understate your actual cash flow. This happens with heavy equipment deductions, multiple income streams, or significant cash business.
We've closed both programs in Solano County dozens of times. The decision comes down to which documentation shows higher qualifying income after lender adjustments.
Don't assume you need the more complex option. Half our self-employed Vacaville clients qualify better on their 1099s than they expected.
No, lenders pick one income calculation method per loan. We test both options separately to see which qualifies you for more.
1099 loans typically price 0.25-0.50% lower than bank statement loans. Rates vary by borrower profile and market conditions.
Yes, both start around 10% down for strong credit. Expect 15-20% down for purchases above typical Vacaville conforming limits.
1099 loans clear income verification in 3-5 days. Bank statement loans take 7-14 days due to deposit analysis and sourcing requirements.
Bank statement loans handle income volatility better. They average deposits over 12-24 months which smooths out seasonal or project-based fluctuations.